Microsoft's gaming division was pretty respected in the industry for a long time. Lots of people give them (deserved) flack over Kinect for the Cbox One, but what really drove them over the cliff was buying all these studios to make Gamepass more attractive. It was actually a good deal for everyone when it was mostly games that were older, but when they started doing day-1 releases of first party games and buying studios to add to the number of games getting that day-1 release it turned sour.

A bunch of games that early adopters would previously have paid 60 bucks for were suddenly included in theit $7/month subscription, so tons of people who would have been buying 10 games a year were suddenly spending less than a hundred bucks on new Xbox games because enough new stuff was coming to Gamepass they could stay busy, so all these AAA releases that cost $100 to make were losing money.

So they raised the process of gamepass to try and keep up, but didn't. Then they bought Activision and lost their lunch when Call of Duty sales plummeted because millions of people with Gamepass who had been buying it annually didn't.

So they increased the price of gamepass so high everyone canceled, removing the only reason many of them were still using Xbox over Playstation, and at the same time the consoles skyrocketed in price.

Now they aren't including Call of Duty from Gamepass for the first year and taking the price partway down, which was a good start to righting the ship but too late.

Chasing the Netflix model doesn't work if you do it dumb. Netflix didn't buy all the other studios to make their original programs. They did make some internal studios, but they mainly partnered with existing studios to make specific programs. Instead of buying Bethesda, they could have partnered with them on specific games, which would have been better for the games, the studio, Microsoft, and Xbox customers. But buying Bethesda was a simpler brute-force solution they employed dozens of times.They became an even dumber Embracer Group. Embracer at least they had a (dumb) plan to sell off the assets. Microsoft bought a bunch of studios with no plan for how to make it profitable.